Crypto Rug Pulls Decline 66% But Losses Surge 1,000% to $6 Billion

In 2025, the threat of crypto rug pulls has undergone a significant transformation, becoming less frequent but far more damaging. The number of rug pulls has decreased by 66%, but the financial losses have skyrocketed to nearly $6 billion, primarily due to the Mantra Network incident. This shift indicates that while the frequency of such scams has diminished, the impact on investors has become more severe. The Mantra Network incident alone highlights the growing sophistication and scale of these fraudulent activities, as scammers are no longer merely chasing quick wins but are instead orchestrating more elaborate and lucrative schemes.

The Mantra Network incident, which occurred on the Polygon blockchain, saw a sharp jump in on-chain activity around mid-April, just before the alleged rug pull. Key metrics such as unique active wallets, transaction count, and volume all increased during this period. According to DappRadar’s data, transaction volume hit almost $800, its highest point since December 2023. This mid-April activity surge stands in contrast to Mantra’s usual pattern, which was typically low aside from isolated spikes in December and June of the previous year. There was no steady upward trend seen until that burst of activity in mid-April.

This incident also reflects a shift in where these scams are happening. Data shows that in early 2024, rug pulls were spread more evenly across DeFi, NFT, and memecoin projects. However, the incidents recorded in 2025 have focused mainly on the memecoin sector. While this narrows the focus of the threat, the effectiveness of these scams appears higher. The memecoin sector dominates 2025 rug pulls, with scams growing more complex and harder to spot. Scam teams are using better branding and more structured stories, making risks harder to spot early on. DappRadar analysts noted rug pulls are less frequent now, but more damaging and harder to detect.

The landscape of crypto scams has expanded to include social media fraud, which has emerged as a top threat to retail investors. This expansion underscores the need for heightened vigilance and education among investors, as the methods used by scammers continue to diversify and become more deceptive. The Base Official 'Promotion' Meme Coin incident, where a mysterious address harvested $200,000 with precision, serves as a stark reminder of the risks involved in the crypto space. This event emphasizes that the risk is not limited to specific platforms but is pervasive across the industry.

The PoisonSeed Campaign, orchestrated by the threat actor EncryptHub, further illustrates the evolving nature of crypto scams. This campaign used stolen email credentials to spread crypto seed scams, resulting in empty wallets for unsuspecting victims. The use of stolen credentials and sophisticated phishing techniques highlights the need for robust security measures and continuous learning in the blockchain safety landscape. The decentralized application landscape evolves rapidly, with new threats emerging regularly, making it crucial for investors to stay informed and adapt to these changes.

The international law enforcement operation, led to the arrest of approximately 3,500 suspects and the seizure of roughly $300 million worth of assets. This operation targeted organizations involved in various online scams, including investment fraud, business email compromise, and e-commerce fraud. The seizure of $300 million represents a significant blow to transnational organized crime and underscores the global threat posed by these activities. The operation also issued two Purple Notices to warn countries about evolving digital investment fraud techniques, including the deceptive sale of Non-Fungible Tokens and the use of AI and deep fake technology in sophisticated scams.

The evolving nature of crypto scams and the increasing sophistication of fraudulent activities pose a significant threat to the security and stability of the global financial system. As the crypto landscape continues to grow and diversify, it is essential for investors, regulators, and law enforcement agencies to work together to combat these threats and protect the interests of all stakeholders. The shift in the threat of crypto rug pulls from less frequent but more damaging incidents highlights the need for continuous vigilance and adaptation in the face of evolving risks.